Dry ingredient mixes and pour-over sauces have prevented the Unilever McCormick megamerger from clearing the phase 1 investigation by the UK’s Competition and Markets Authority (CMA).
The deal “gives rise to a realistic prospect of a substantial lessening of competition”, says the CMA. It will be referred “for an in-depth, phase 2 investigation unless the parties offer an acceptable undertaking to address these competition concerns”.
The companies have until November 18 to offer solutions.
Sticking point
The planned megamerger was announced in March 2026, making it a potential $44.8bn sale that would create “a global flavour powerhouse anchored in a portfolio of iconic brands”, according to a joint statement. It cleared the antitrust process in the US in October, but it seems that part of its portfolio could now present a roadblock.
The UK phase 1 investigation was launched in September. The products of particular concern to the CMA were the supply of dry ingredient mixes, such as chilli con carne, and dry sauces, such as parsley sauce to retailers in the UK, plus the supply of mustard to UK retailers.
For the dry cooking ingredient mixes and pour-over sauces, the CMA stated that “the Merger will combine the two largest branded suppliers and the Merged Entity will be the largest supplier of dry ingredient mixes and dry sauces by far”. It found that “the Parties are closely competing in dry ingredient mixes and dry sauces”.
Private labels and branded competitors such as Maggi and Bisto “exert some degree of competitive restraint”, but their products “impose only a limited constraint on the Parties in dry ingredient mixes and dry sauces”.
Mustard, however, was found not to be a competition problem.
McCormick has French’s American-style mustard, while Unilever has Colman’s English Mustard and Maille French mustard. “Evidence from large supermarkets indicated that end-consumers typically do not consider English, French and American style mustards to be suitable alternatives to one another, and as a result, it is important for supermarkets to stock each of the different types of mustard,” says the CMA. As there is “limited meaningful competitive interaction between the different types of mustard”, it therefore found “no realistic prospect of competition concerns in relation to mustard”.
We will continue to monitor the process.
